ENCLOSURE No./ TO GOVERNOR'S DESPATCH No.466 of
24th October, 1902.
C. O.
151
46500
24 NOV C
1.
In the first place it must be bornet in mind that it is not to the interest of the Chief Manager of the BongKong Bank to advocate a Government Loan. Such Loan would absorb money that would otherwise probably be placed on fixed deposit in the
Bank.
2.
The credit of the BongKong Club and even that of
the Municipality at Shanghai cannot compare with that of the Hong-
Kong Government.
፭.
I would not be surprised to see a Government
Loan freely subscribed for by Chinese both inside and outside the Colony. An absolutely safe 57 stock would appeal to the Chinese
in Canton I think.
4.
I believe Insurance Companies too would patronise
the Government Stock.
5. We are paying interest on a Gold Loan, so if Exchange rises after we borrow in Silver we shall still have the satisfaction of saving interest. If Exchange falls we shall con- sole ourselves by the reflection that we hold also a Silver Loan.
8.
Exchange looks low at 1/8d. So it did at 3s/-.. 2s/6d, and 2s/-. There is nothing to prevent it falling to is/- The Colony has no gold. Therefore to contract
7.
to pay in gold which the Colony will have to purchase for the purpose of each annual payment on account of the Loan, appears to
me to be unsound.
(84.). P.B.Yay. 15/10/1902.
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